A managing director at Citigroup said this week that travel companies are likely to come under pressure in the long run, and this could lead to airlines to struggle with profitability. However, it’s not all bad news for the industry, with signs of recovery on the leisure side and discounts offered by manufacturers.
The aviation industry has been hit hard by the global pandemic, which has led to border closures and travel restrictions. This week, the International Air Transport Association (IATA) said airlines are expected to lose $84.3 billion in 2020.
The IATA released a report a report on its outlook for the global aviation industry, forecasting revenues to drop by nearly 50% to $419 million from $838 million in 2019. In 2021, losses are expected to drop to $15.8 billion as revenues rise to $598 million